- Third Quarter Revenue of $122.9 Million, up
57% Year-over-Year -
- Full Year 2021 Revenue Guidance Raised to
between $480 and $500 Million -
Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading
online casino and sports betting company in the United States,
today announced financial results for the third quarter ended
September 30, 2021.
Third Quarter 2021 Financial Highlights
- Revenue was $122.9 million during the third quarter of 2021, an
increase of 57%, compared to $78.2 million during the third quarter
of 2020.
- Net loss was $18.9 million during the third quarter of 2021,
compared to a net loss of $26.5 million during the third quarter of
2020.
- Adjusted EBITDA1 loss was $12.2 million during the third
quarter of 2021, compared to an Adjusted EBITDA of $1.0 million
during the third quarter of 2020.
- Adjusted advertising and promotions expense1 was $45.4 million,
or 37% of revenue, during the third quarter of 2021, compared to
$17.5 million during the third quarter of 2020.
- Real-Money Monthly Active Users (“MAUs”) in the United States
for the third quarter of 2021 were up 26% year-over-year with
average revenue per MAU (“ARPMAU”) of $380 during the third quarter
of 2021.
- As of September 30, 2021, RSI had $347 million of unrestricted
cash and cash equivalents.
Richard Schwartz, Chief Executive Officer of RSI, said, “We are
very encouraged by the ongoing execution of our business strategy
across the entire organization. New market access and launches have
continued to be a significant driver of our overall success. We
have recently launched the PlaySugarHouse online sportsbook and
four of the fifteen planned retail sportsbooks in Connecticut. RSI
is one of only three permitted operators in the state and is the
exclusive partner of the Connecticut Lottery. Additionally, we
recently launched with the BetRivers brand for online sports
betting in Arizona via our partnership with the Arizona Rattlers,
as well as our social gaming platform, CASINO4FUN® in Ontario which
will set the stage for future incremental revenues when the Ontario
market goes live. Earlier this week, RSI was selected by the State
of New York as one of just nine operators permitted to offer mobile
sports wagering in the state. Upon launch of its online sportsbook
in New York, RSI will be one of only three companies with online
gaming market access in New York, New Jersey, and Connecticut. The
New York City media market, the largest media market in the nation,
taps into all three states in the tri-state region, giving RSI
significant long-term marketing efficiencies.
“In addition to growing our current markets, we have worked to
expand our bet offerings to existing customers. Single-game-parlay
markets are now live in all of our sports betting states and we
have launched BetRivers.com and PlaySugarHouse.com branded,
live-casino studios for players in Pennsylvania and New Jersey. Our
exclusive partnership with Magic City Jai-Alai allows us to offer
sports betting on the fast-action sport.”
“Our solid execution is also being recognized within our
industry. We were recently awarded ‘Sportsbook of the Year' at the
SBC Latinoamérica Awards 2021 and shortlisted for ‘Casino Operator
of the Year,’ ‘Social Operator of the Year’ and ‘Leader of the
Year’ at the SBC Awards North America to be held in early December.
Additionally, in the most recent quarterly update, our BetRivers
sportsbook mobile app was rated #3 out of 35 total apps in the US
Market by Eilers & Krejcik. We are thankful for the
recognitions and believe that they provide further validation of
our success in providing a premier experience to our
customers.”
Increasing 2021 Revenue Guidance
RSI expects revenues for the full year ending December 31, 2021
to be between $480 and $500 million, up from its previous guidance
of between $465 and $495 million. At the midpoint of the range,
revenue of $490 million represents 76% year-over-year growth when
compared to $278.5 million of revenues for 2020. This increase
reflects RSI’s strong results for the first three quarters of 2021
and further anticipated growth in the fourth quarter of this
year.
This range is based on certain assumptions, including that (i)
only operations in live jurisdictions as of today’s date are
included, (ii) all professional and college sports calendars that
have been announced come to fruition, including the completion of
their 2021 seasons, and (iii) RSI continues to operate in markets
in which it is live today.
Recent Business Highlights
- Launched PlaySugarHouse online sportsbook in Connecticut, along
with four of the fifteen planned retail sportsbooks, as the
exclusive sportsbook partner of the Connecticut Lottery, and as one
of just three permitted online operators in the state.
- Launched online sports betting in Arizona via our partnership
with the Arizona Rattlers. RSI will serve as the team’s operating
partner for online sports betting, having secured one of the ten
sports wagering licenses in the state.
- Entered the Canadian market early with the launch of our social
gaming platform, CASINO4FUN®, in the province of Ontario at
BetRivers.net.
- Selected by the State of New York as one of only nine operators
that are licensed to offer mobile sports wagering in the
state.
- Awarded Sportsbook of the Year at the SBC Awards Latinoamérica
and shortlisted for three SBC North America awards including Casino
Operator, Social Operator, and Leader of the Year.
- Announced an exclusive partnership with Magic City Jai-Alai to
offer sports betting on the fast-action sport of jai alai.
- Launched BetRivers.com and PlaySugarHouse.com branded,
live-casino studios for players in Pennsylvania and New
Jersey.
- Formed brand ambassador partnerships with tennis great and
respected TV tennis analyst, James Blake, and three-time Super Bowl
champion and NFL broadcasting veteran, Mark Schlereth.
- Launched “CityCasts,™”city-specific sports betting audio and
video podcasts in major cities across the U.S. for BetRivers and
PlaySugarHouse brands.
- Partnered with the American Gaming Association's Have A Game
Plan.® Bet Responsibly.™ Campaign focused on educating sports fans
about the core principles of responsible sports betting.
Technology Updates
- RSI mobile sportsbook app independently rated #3 out of 35 apps
in the U.S. market in October 2021 by Eilers & Krejcik.
- Remain on track to launch our integrated iOS sportsbook-casino
app by year end.
- Offering single-game-parlays in all of our online sports
betting jurisdictions.
- Launched RushArena™, a proprietary multi-player tournament
engine that advances the quality of our online casino player
experience.
Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at 5:00
p.m. Eastern Time (4:00 p.m. Central Time), during which management
will discuss third quarter results and provide commentary on
business performance and its current outlook for 2021. A
question-and-answer session will follow the prepared remarks.
The conference call may be accessed by dialing 1-844-200-6205
for domestic callers or +1-929-526-1599 for international callers.
The conference call access code is 309541.
A live audio webcast of the earnings conference call may be
accessed on RSI’s website at ir.rushstreetinteractive.com, along
with a copy of this press release and an investor slide
presentation. The audio webcast and investor slide presentation
will be available on RSI’s investor relations website until at
least December 10, 2021.
About Rush Street Interactive
RSI is a trusted online gaming and sports entertainment company
focused on regulated markets in the United States and Latin
America. Through its brands, BetRivers.com and PlaySugarHouse.com,
RSI was an early entrant in many regulated jurisdictions and is
currently live with real-money mobile, online and/or retail
operations in twelve U.S. states: Pennsylvania, Illinois, New
Jersey, New York, Connecticut, Michigan, Indiana, Virginia,
Colorado, Iowa, West Virginia, and Arizona. RSI is also active
internationally, offering its online casino and sportsbook in the
regulated gaming market of Colombia on RushBet.co. RSI offers,
through its proprietary online gaming platform, some of the most
popular online casino games and sports betting options in the
United States. Founded in 2012 in Chicago by gaming industry
veterans, RSI was named the 2020 Global Gaming Awards Digital
Operator of the Year and the 2021 EGR North America Awards Casino
Operator of the Year, Customer Services Operator of the Year and
Social Gaming Operator of the Year. RSI is committed to
industry-leading responsible gaming practices and seeks to provide
its customers with the resources and services they need to play
responsibly. For more information, visit
www.rushstreetinteractive.com.
Non-GAAP Financial Measures
In addition to providing financial measurements based on
accounting principles generally accepted in the United States
(“GAAP”), this press release includes certain financial measures
that are not prepared in accordance with GAAP, including Adjusted
EBITDA, Adjusted Operating Costs and Expenses, Adjusted Net Loss
Per Share, Adjusted Net Loss and Adjusted Weighted Average Common
Shares Outstanding, each of which is a non-GAAP performance measure
that RSI uses to supplement its results presented in accordance
with GAAP. A reconciliation of each such non-GAAP financial measure
to the most directly comparable GAAP financial measure can be found
below. RSI believes that presentation of these non-GAAP financial
measures provides useful information to investors regarding RSI’s
results of operations and operating performance, as they are
similar to measures reported by its public competitors and are
regularly used by security analysts, institutional investors and
other interested parties in analyzing operating performance and
prospects. These non-GAAP financial measures are not intended to be
considered in isolation or as a substitute for any GAAP financial
measures and, as calculated, may not be comparable to other
similarly titled measures of performance of other companies in
other industries or within the same industry.
RSI defines Adjusted EBITDA as net income (loss) before
interest, income taxes, depreciation and amortization, share-based
compensation, adjustments for certain one-time or non-recurring
items and other adjustments. Adjusted EBITDA excludes certain
expenses that are required in accordance with GAAP because certain
expenses are either non-cash (for example, depreciation and
amortization, and share-based compensation) or are not related to
our underlying business performance (for example, interest income
or expense).
RSI defines Adjusted Operating Costs and Expenses as RSI’s GAAP
operating costs and expenses adjusted to exclude the impacts of
share-based compensation, certain one-time or non-recurring items
and other adjustments. Adjusted Operating Costs and Expenses
excludes certain expenses that are required in accordance with GAAP
because certain expenses are either non-cash (for example,
share-based compensation) or are not related to our underlying
business performance.
RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss
divided by Adjusted Weighted Average Common Shares Outstanding.
Adjusted Net Loss is defined as net loss attributable to Rush
Street Interactive, Inc. as used in the diluted net loss per share
calculation, adjusted for the reallocation of net loss attributable
to noncontrolling interests, share-based compensation, certain
one-time or non-recurring items and other adjustments. Adjusted
Weighted Average Common Shares Outstanding is defined as the
weighted average number of common shares outstanding as used in the
diluted net loss per share calculation, adjusted for the assumed
conversion of the noncontrolling interest’s Rush Street
Interactive, LP Class A units to Class A common stock of RSI on a
one-to-one-basis.
RSI includes these non-GAAP financial measures because
management uses them to evaluate RSI’s core operating performance
and trends and to make strategic decisions regarding the allocation
of capital and new investments. Management believes that these
non-GAAP financial measures provide investors with useful
information on RSI’s past financial and operating performance,
enable comparison of financial results from period-to-period where
certain items may vary independent of business performance, and
allow for greater transparency with respect to metrics used by
RSI’s management in operating our business. Management also
believes these non-GAAP financial measures are useful in evaluating
our operating performance compared to that of other companies in
our industry, as these metrics generally eliminate the effects of
certain items that may vary from company to company for reasons
unrelated to overall operating performance.
Key Metrics
RSI provides certain key metrics, including MAUs and ARPMAU, in
this press release. RSI defines MAUs as the number of unique
players per month who have placed at least one real-money bet
across one or more of our online casino or online sports betting
offerings, and it defines ARPMAU as average revenue for the
applicable period divided by the average MAUs for the same
period.
The numbers RSI uses to calculate MAUs and ARPMAU are based on
internal RSI data. While these numbers are based on what RSI
believes to be reasonable judgments and estimates of our customer
base for the applicable period of measurement, there are inherent
challenges in measuring usage and engagement with respect to our
online offerings across our customer base. Such challenges and
limitations may also affect RSI’s understanding of certain details
of its business. In addition, RSI’s key metrics and related
estimates, including the definitions and calculations of the same,
may differ from estimates published by third parties or from
similarly-titled metrics of its competitors due to differences in
operations, offerings, methodology and access to information. RSI
regularly reviews, and may adjust its processes for calculating,
its internal metrics to improve their accuracy.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. RSI's actual results may
differ from their expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate,"
"intend," "plan," "may," "will," "could," "should," "believes,"
"predicts," "potential," "continue," and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, statements
regarding guidance, RSI’s future results of operations or financial
condition, RSI’s strategic plans and focus, anticipated launches of
RSI’s current or new offerings in existing or future jurisdictions,
player growth and engagement, product initiatives and the
objectives of management for future operations. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside RSI's control and are difficult to predict. Factors that
may cause such differences include, without limitation: changes in
applicable laws or regulations; RSI’s ability to manage growth;
RSI’s ability to execute our business plan and meet its
projections; unanticipated product or service delays; general
economic and market conditions impacting the demand for RSI’s
products and services; economic and market conditions in the
gaming, entertainment and leisure industry in the markets in which
RSI operates; the potential adverse effects of the COVID-19
pandemic on capital markets, general economic conditions,
unemployment and RSI’s liquidity, operations and personnel; and
other risks and uncertainties indicated from time to time in RSI's
filings with the SEC. RSI cautions that the foregoing list of
factors is not exclusive. RSI cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. RSI does not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
1 This is a non-GAAP financial measure. Please see “Non-GAAP
Financial Measures” for more information about this non-GAAP
financial measure and “Reconciliations of GAAP to Non-GAAP
Financial Measures” for a reconciliation of the most comparable
measure calculated in accordance with GAAP to this non-GAAP
financial measure.
Rush Street Interactive, Inc.
Consolidated Condensed Statements of Operations and Comprehensive
Loss (Unaudited and in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Revenue
$
122,920
$
78,237
$
357,540
$
178,452
Operating costs and expenses
Costs of revenue
81,221
47,107
245,668
118,774
Advertising and promotions
46,077
17,506
125,836
33,421
General administration and other
12,318
39,650
40,650
114,815
Depreciation and amortization
1,007
452
2,595
1,368
Total operating costs and expenses
140,623
104,715
414,749
268,378
Loss from operations
(17,703
)
(26,478
)
(57,209
)
(89,926
)
Other income (expenses)
Interest expense, net
(11
)
(16
)
(41
)
(101
)
Change in fair value of warrant
liabilities
—
—
41,802
—
Change in fair value of earnout interests
liability
—
—
(13,740
)
—
Total other income (expenses)
(11
)
(16
)
28,021
(101
)
Loss before income taxes
(17,714
)
(26,494
)
(29,188
)
(90,027
)
Income tax expense
1,225
—
3,781
—
Net loss
$
(18,939
)
$
(26,494
)
$
(32,969
)
$
(90,027
)
Net loss attributable to non-controlling
interests
(13,639
)
—
(23,885
)
—
Net loss attributable to Rush Street
Interactive, Inc.
$
(5,300
)
$
(26,494
)
$
(9,084
)
$
(90,027
)
Net loss per common share attributable to
Rush Street Interactive, Inc. – basic
$
(0.09
)
N/A
$
(0.16
)
N/A
Weighted average common shares outstanding
– basic
59,191,384
N/A
55,148,218
N/A
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted
$
(0.09
)
N/A
$
(0.33
)
N/A
Weighted average common shares outstanding
– diluted
59,191,384
N/A
56,488,691
N/A
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Net loss
$
(18,939
)
$
(26,494
)
$
(32,969
)
$
(90,027
)
Other comprehensive loss
Foreign currency translation
adjustment
(168
)
(134
)
(1,060
)
(444
)
Comprehensive loss
$
(19,107
)
$
(26,628
)
$
(34,029
)
$
(90,471
)
Comprehensive loss attributable to
non-controlling interests
(13,762
)
—
(24,685
)
—
Comprehensive loss attributable to Rush
Street Interactive, Inc.
$
(5,345
)
$
(26,628
)
$
(9,344
)
$
(90,471
)
Rush Street Interactive, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted EBITDA:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Net loss
$
(18,939
)
$
(26,494
)
$
(32,969
)
$
(90,027
)
Interest expense, net
11
16
41
101
Income tax expense
1,225
—
3,781
—
One-time payment from Affiliated
casino
—
(9,000
)
—
(9,000
)
Depreciation and amortization
1,007
452
2,595
1,368
Change in fair value of warrant
liability
—
—
(41,802
)
—
Change in fair value of earnout interests
liability
—
—
13,740
—
Share-based compensation expense
4,468
36,023
20,705
103,282
Adjusted EBITDA
$
(12,228
)
$
997
$
(33,909
)
$
5,724
Adjusted Operating Costs and
Expenses:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
GAAP operating costs and
expenses:
Costs of revenue
$
81,221
$
47,107
$
245,668
$
118,774
Advertising and promotions
46,077
17,506
125,836
33,421
General administration and other
12,318
39,650
40,650
114,815
Depreciation and amortization
1,007
452
2,595
1,368
Total operating costs and
expenses
$
140,623
$
104,715
$
414,749
$
268,378
Non-GAAP operating cost and expense
adjustments:
Costs of revenue1
$
(298
)
$
9,000
$
(1,511
)
$
9,000
Advertising and promotions2
(637
)
—
(2,971
)
—
General administration and other2
(3,533
)
(36,023
)
(16,223
)
(103,282
)
Depreciation and amortization
—
—
—
—
Total non-GAAP operating cost and
expense adjustments
$
(4,468
)
$
(27,023
)
$
(20,705
)
$
(94,282
)
Adjusted operating costs and
expenses:
Costs of revenue
$
80,923
$
56,107
$
244,157
$
127,774
Advertising and promotions
45,440
17,506
122,865
33,421
General administration and other
8,785
3,627
24,427
11,533
Depreciation and amortization
1,007
452
2,595
1,368
Total adjusted operating costs and
expenses
$
136,155
$
77,692
$
394,044
$
174,096
- Non-GAAP Operating Costs and Expense Adjustments for the three
and nine months ended September 30, 2021 include Share-based
compensation, while Non-GAAP Operating Costs and Expense
Adjustments for the three and nine months ended September 30, 2020
include a one-time payment from Affiliated casino.
- Share-based compensation.
Rush Street Interactive, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted Net Loss, Adjusted Weighted
Average Common Shares Outstanding and Adjusted Net Loss Per
Share:
Three Months Ended September
30, 2021
Nine Months Ended September
30, 2021
Adjusted Net Loss
Net loss attributable to Rush Street
Interactive, Inc. – diluted1
$
(5,300
)
$
(18,653
)
Adjustments:
Add: Net loss attributable to
non-controlling interests
(13,639
)
(23,885
)
Less: Change in fair value of warrant
liabilities attributable to noncontrolling interests
—
(32,233
)
Add: Change in fair value of earnout
interests liability
—
13,740
Add: Share-based compensation expense
4,468
20,705
Adjusted Net Loss
$
(14,471
)
$
(40,326
)
Adjusted Weighted Average Common Shares
Outstanding
Weighted average common shares outstanding
– diluted2
59,191,384
56,488,691
Adjustments:
Add: Conversion of weighted average RSILP
units to Class A Common Shares
159,986,105
159,335,977
Adjusted Weighted Average Common Shares
Outstanding
219,177,489
215,824,668
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted:
$
(0.09
)
$
(0.33
)
Adjusted Net Loss per Share
$
(0.07
)
$
(0.19
)
- Net loss attributable to Rush Street Interactive, Inc. –
diluted for the nine months ended September 30, 2021, includes the
Net loss attributable to Rush Street Interactive, Inc. adjusted for
the dilutive effect of previously outstanding warrants that were
redeemed in March 2021 (i.e., the portion of the change in fair
value of warrants attributed to Rush Street Interactive Inc.).
There was no dilutive effect for the three months ended September
30, 2021.
- Weighted average common shares outstanding – diluted for the
nine months ended September 30, 2021, includes the basic number of
weighted average common shares outstanding, adjusted for the
dilutive effect of previously outstanding warrants that were
redeemed in March 2021 using the Treasury Stock Method. There was
no dilutive effect for the three months ended September 30,
2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110006275/en/
Media Contacts: Jonathan Gasthalter / Carissa Felger /
Nathaniel Garnick (312) 319-9233 / (212) 257-4170
rsi@gasthalter.com or Lisa Johnson (609) 788-8548
lisa@lisajohnsoncommunications.com
Investor Contact: ir@rushstreetinteractive.com
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